InsCorp 3rd Quarter Profits Driven by Growth in Loans and Margins

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NASHVILLE, Tennessee., November 1, 2021 / PRNewswire / – InsCorp, Inc. (OTCQX: IBTN) in Nashville, and parent company of INSBANK, today announced third quarter profit of $ 1,626,000, Where $ 0.55 per share compared to $ 343,000 and $ 0.11 per share for the same period in 2020. $ 4,286,000, Where $ 1.46 per share, which represents an increase of 164% over the previous year of $ 1,624,000 for the nine months ended September 30, 2020. It was the most profitable company 3rd interim performance for the quarter in its history. The cost of INSBANK’s interest-bearing deposits decreased by 17 basis points during the quarter, continuing a trend for the Nashvillelender, term deposits having been revalued during the year. This, along with the recognition of fees associated with the paycheck protection program, contributed to a 21 basis point increase in net interest margin in the quarter.

Core loans, excluding PPP advances, increased $ 35.6 million during the quarter, driven by growth in the bank’s niche medical division, Medquity, as well as commercial real estate loans. Loans, excluding PPP advances, have increased by over 17% over the past 12 months, while total loans have increased by 10% over the same period. “Our team remains focused on executing our strategy of balanced organic growth, both locally and within our national physician-focused silos,” said Jim Rieniets, President and CEO of INSBANK.

The company continues to reap the benefits of its investments in technology, as evidenced by its operational efficiency and utilization of its people. The bank’s metrics: efficiency ratio, operating expenses as a percentage of assets, and assets per employee continue to compare favorably to its industry peer group and place it in the top quartile of these performance metrics. “The acceleration of digital trends by the pandemic has prompted many community banks to scramble to find their place in the future of our industry,” Rieniets continued. “The focus on fintech is not a moving phenomenon at INSBANK; it has been part of our DNA since the bank was founded over 20 years ago. ”

The Board of Directors also recently approved the payment of a semi-annual dividend. InsCorp shareholders November 19, 2021, will receive a $ 0.12 dividend payable on December 10, 2021. “Although most of our profits are needed to support the growth of the bank, we are pleased to increase the value of our shareholders with a dividend yield,” added Michael quall, President of InsCorp.

Highlights for the quarter and year over year include:

  • Total assets increased $ 94 million year on year or 16% from September 30, 2021.
  • Non-interest bearing deposits increased $ 17.5 million or 27.8% during the 12 months ended September 30, 2021.
  • The deferred loan fees associated with PPP loans are approximately $ 479,000 To September 30, 2021.
  • The efficacy rate was 50.9% at September 30, 2021, comparing favorably to the bank’s FDIC peer group average of 60.5%.
  • Non-interest expense to total average assets was 1.66% for the nine-month period ended September 30, 2021, slightly lower than 1.74% for the same period in 2020 and compares favorably to the bank’s FDIC peer group average of 2.41%.
  • The cost of all interest-bearing funding was 0.75% for the three months ended. September 30, 2021 down from 1.47% for the same period in 2020.
  • Assets per employee remained strong at $ 13.8 million, compared to the FDIC peer group of $ 6.7 million.
  • The bank’s Tier 1 capital ratio was 11.6%, while total risk-based capital was 12.9%.
  • The allowance for losses on loans and leases was 1.42% excluding PPP loan balances.
  • The annualized return on tangible common equity for the year was 10.95% for the nine months ended September 30, 2021
  • Increased tangible book value $ 0.55 To $ 18.59 during the quarter mainly due to retained earnings.
  • The percentage of past due and unaccounted for loans to gross loans was 0.52%, compared to 0.86% for peers.
  • Net depreciation for the closed quarter September 30, 2021, were $ 25,000.

About INSBANK

Since 2000, INSBANK has been offering its clients a highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, using technologies to provide these services in an efficient and practical manner. In addition to its business activities, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online. Medquity offers healthcare banking solutions to individuals nationwide, whether they are still in residence, practicing, or retiring, while TMA Medical Banking provides banking services specifically to members of Tennessee Medical. Association. INSBANK Online offers virtual private client services available nationwide for interest bearing deposits. INSBANK is owned by InsCorp, Inc., a Tennessee bank holding company. The bank is headquartered at Nashville at 2106 Crestmoor Road, and has an office at Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com

InsCorp, Inc.

Consolidated balance sheets

(in thousands)

(unaudited)










September 30


The 31st of December,


September 30



2021


2020


2020

Assets






Cash and cash equivalents

$ 16,400


$ 8,219


$ 8,476

Interest bearing deposits

58,738


33,356


25,415

Securities

17,513


17,039


19,304








Loans

549,510


525 235


500 133

Allowance for loan losses

(7,575)


(7,365)


(7,015)

Net loans

541 935


517 870


493 118








Premises and equipment, net

13,417


13,630


13,757

Bank-owned life insurance

13 318


10.115


10,052

Restricted equity securities

9 453


7 612


6,826

Goodwill and related intangible assets, net

1,091


1,091


1,091

other assets

7 865


8,298


7,706








Total assets

$ 679,730


$ 617,230


$ 585,745








Liabilities and equity






Liabilities






Deposits







Not bearing interest

$ 80,504


$ 52,665


$ 62,994


Bearing interest

478,533


417,731


384 684


Total deposits

559,037


470,396


447 678








Federal Bank Advances for Home Loans

39,000


50,000


49,000

Paycheck Protection Program Liquidity Fund

4 932


18,412


18,412

Subordinated debentures

15,000


15,000


15,000

Federal funds purchased

2,000


7,000


Other liabilities

3 980


5,328


4,846

Total responsibilities

623 949


566,136


534 936








Equity







Ordinary actions

31 662


31 190


31 190


Own shares

(663)


(681)


(278)


Accumulated retained earnings

24,293


20 377


19,568


Cumulative other comprehensive income

489


208


329


Total equity for shareholders

55,781


51,094


50,809

Total liabilities and equity

$ 679,730


$ 617,230


$ 585,745








Tangible book value

$ 18.59


$ 17.24


$ 16.98

InsCorp, Inc.

Consolidated income statements

(in thousands)

(Unaudited)










Nine months ended


Twelve months ended


Nine months ended



September 30, 2021


December 31, 2020


September 30, 2020








Interest income

$ 18,380


$ 22,694


$ 17,082

Interest charges

3 752


7 221


5 638

Net interest income

14 628


15,473


11,444

Allowance for loan losses

1,400


2,400


1,850

Income other than interest







Service charges on deposit accounts

180


212


154


Bank-owned life insurance

202


251


187


Gain on Int Rate Hedges and Sec sales

206




Other

892


705


534

Non-interest charges







Salaries and Benefits

5,098


6,200


4,598


Occupancy and equipment

984


1 233


896


Data processing

446


553


410


Marketing and Advertising

404


349


247


Other

1,530


1,843


1,439

Net operating income

6,246


4,063


2 879








Interest – Subordinated debt

717


956


717

Income before taxes

5 529


3 107


2,162

Income tax expense

(1,243)


(674)


(538)

Net revenue

$ 4,286


$ 2,433


$ 1,624








Return on weighted average common stocks

$ 1.46


$ 0.83


$ 0.55

SOURCE BANK

Related links

https://www.insbanktn.com/


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